TL;DR
- President Biden’s withdrawal from the 2024 race caused significant fluctuations in political memecoins, with Trump and Harris-related tokens surging while Biden-themed coins plummeted.
- The crypto community celebrated Biden’s exit, viewing it as potentially favorable for crypto-friendly policies, especially with Trump’s increased chances of winning.
- The volatile nature of political memecoins was highlighted, demonstrating the extreme risks investors face due to rapid value fluctuations based on political events.
President Joe Biden has made it clear that he will not run for reelection in 2024. He emphasized the importance of putting the party and the country first in his decision. He has thrown his support behind Vice President Kamala Harris, endorsing her as his preferred successor and offering her his full backing. The decision has sent shockwaves through the political memecoins market.
— Joe Biden (@JoeBiden) July 21, 2024
Biden chose to drop out of the race as pressure continued to build from different sources. Lately, several sitting senators have urged him to bow out. Additionally, reports indicate that former President Barack Obama advised him to do so.
Memecoins Winners
- Kamala Harris-related tokens: Tokens associated with Vice President Kamala Harris, such as the “Kamala Horris” (KAMA) token, surged by 53.4% amidst speculations that she might be the next Democratic candidate.
- Trump-related memecoins: Tokens associated with former President Donald Trump have seen a significant surge in value. The Donald Trump (TRUMP) token increased by more than 40%, while the MAGA (TRUMP) token surged by over 50% shortly after the news broke. However, at the time of writing, both tokens are barely trading with a 1% gain.
Memecoins Losers
- Biden-themed memecoins: Tokens named after President Biden and his family members, such as the “Jeo Boden” (BODEN) token, dropped more than 56% within 24 hours of his announcement. This decline wiped nearly $10 million from BODEN’s market cap. However, at the time of writing, is trading with an 8% gain.
- Gabin Noosum token: Another candidate-related token, Gabin Noosum, dropped an impressive 50%.
The sharp market response highlights the speculative nature of memecoins, which often react strongly to news and public perceptions. Investors in these tokens face extreme risks, as their value can fluctuate wildly based on the political climate and news cycles.
According to Polymarket data, Donald Trump continues to maintain his top position, with 63% odds of winning the election, while Kamala Harris’s chances have risen to 26%.
The crypto community has celebrated Biden’s exit, as his administration faced criticism for its lack of a coherent regulatory framework and stringent policies impacting crypto investors and companies. Trump, who has become a favorite of the crypto community in recent times, has promised to bring crypto-friendly policies to Americans if elected.
